The MF Global fiasco edged closer to final resolution Wednesday after JPMorgan Chase agreed to return $546 million to customers of the failed brokerage.
JPMorgan will pay $100 million to MF Global clients, according to the terms of the agreement. The trustee charged with liquidating the brokerage’s assets will release another $417 million in funds that had previously been returned by the bank.
JPMorgan will also return a final $29 million in funds held by the bank after MF Global’s stunning collapse and bankruptcy in late 2011.
The settlement, which still must be approved by the courts, should be one of the last major actions in the MF Global bankruptcy case. The trustee, James Giddens, has recovered a significant percentage of customer funds that were thought to be lost in the chaotic final days of the brokerage led by former New Jersey Gov. Jon Corzine.
